BUSINESSMAN Freddy Shepherd will start building his controversial luxury housing development after being given the green light by councillors.

The ex-Newcastle United chairman has been granted permission to transform the former La Sagesse School site at Jesmond Towers into 10 apartments and 59 homes.

The hotly disputed development has been at the centre of a planning storm with local residents opposing it for more than three years.

Protesters have now pledged to launch legal action by calling for a judicial review into Newcastle City Council’s handling of the application.

Speaking after the meeting, Freddy’s brother, Bruce Shepherd, said the council’s decision had been a fair one: “Everybody had a clear hearing and all the heritage and all the history of the site was brought out.

“We have listened to the residents for over three years and had numerous meetings with them. The majority of people were in favour.

“We want to start work immediately on the historic buildings because they need urgent repair, particularly to the roof.

“For us there’s a pleasure in preserving historic buildings which are so closely related to the industry of the Tyne.”

The Shepherd brothers first talked of redeveloping Jesmond Towers – the former home of the Mitchell ship-building family – shortly after they bought it in 2009.

Plans submitted in January 2012 were turned down.

In August, however, a second application with widened gaps between plots was recommended for approval by officers.

Rex Winter, of the Jesmond Action Group, said: “The reasons behind this decision will be subject to intense scrutiny beyond the legal action that is now going to happen.

“We warned the council that they would face legal action if these applications were approved.

“We have the funding to bring this claim, we have the grounds and we have the determination.”

There were 80 letters of objection and 90 in favour of the application.